How a healthcare company transformed decision-making across 140 sites

Marketing Transformation

Jon Ciampi Daniel Burstein

VP, Marketing, Business Development Director

& Corporate Development Editorial Content

CRC Health MECLABS

Session Speaker

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Jon Ciampi

VP, Marketing, Business Development

& Corporate Development

CRC Health

Jon oversees all marketing and business development efforts for CRC Health, a $450M revenue company. He manages the strategic accounts team and contracting team focused on 200 insurance contracts accounting for $200M of CRC’s revenue, including large accounts like Aetna, Cigna, and Magellan. He also oversees all growth initiatives from cradle to grave, including two acquisitions. Jon started his career at Wells Fargo and Oracle, and he holds two patents in analyzing and rating electronic documents.

About CRC Health

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A subsidiary of Bain Capital, CRC Health Group is the largest and most comprehensive network of specialized behavioral care services in the nation.

The Challenge

If we spend more money, will we get more revenue?

• An “Aha Moment” from testing

• Transforming the marketing message by using three phases of value proposition testing

• Transforming the marketing department’s culture

• Transforming the entire business

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Experiment ID: Sierra Tucson Testing Phase: Value Category (Phase 1)

Background: An addiction and mental health rehabilitation facility.

Objective: Increase the total number of leads captured.

Primary Research Question: Which value category will obtain the most form submissions?

Test Design: Multi-factor split test

Research Notes:

Experiment #1: Background

Control

• Average short-form page template with a rotating banner.

• Call to action is on the right hand side and above “the fold.”

Control

Experiment #1: Treatment Treatment - Top

Treatment Treatment – Middle

Treatment Treatment – Bottom

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Experiment #1: Side-by-side

Treatment

The treatment is nearly 2x the length of the control and the call-to-action is at the bottom of the page.

Control

Experiment #1: Results

Design Conversion Rate

Control 0.78%

Treatment 2.48%

Relative Difference 220%

220% Increase in Total Conversion The treatment page increased the rate of conversion by 220%

What you need to understand: By utilizing a single-column, long-copy approach, the treatment better guides the prospect’s thought process and generates 220% more leads online.

Experiment #1: Results

Design Conversion Rate

Control 0.78%

Treatment 2.48%

Relative Difference 220%

220% Increase in Total Conversion The treatment page increased the rate of conversion by 220%

What you need to understand: By utilizing a single-column, long-copy approach, the treatment better guides the prospect’s thought process and generates 220% more leads online.

Aha Moment: Trust was more important to

customers than luxury

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Experiment ID: Turn-About Ranch Testing Phage: Value Category (Phase 1)

Background: Working cattle ranch for troubled teens

Objective: Increase the total number of leads captured.

Primary Research Question: Which value category will obtain the most form submissions?

Test Design: Multi-factor split test

Research Notes:

Experiment #2: Background

Experiment #2: Control

• Rotating banner with hero shots

• Glamourized imagery of “Dr. Phil Show” episode

• Leading with “Unique Setting”

Control

Treatment • Leads with trust-

based messaging: “Recommended by doctors and therapists,” “24 years in business”

• Real people (“A Message from our Director,” “Testimonial”

• 3rd-party credibility indicators

Experiment #2: Results

Design Conversion Rate

Control 6.92%

Treatment 8.98%

Relative Difference 29.8%

29.8% Increase in Total Conversion The treatment page increased the rate of conversion by 29.8%

What you need to understand: By utilizing trust-based messaging, the treatment better ties into the prospect’s thought process and generates 29.8% more leads online.

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Experiment ID: Sierra Tucson Testing Phase: Value Proposition (Phase 2)

Background: An addiction and mental health rehabilitation facility.

Objective: Increase the clickthrough rate.

Primary Research Question: Which PPC ad will obtain the most clickthroughs?

Test Design: A/B split test

Research Notes:

Experiment #3: Background

Experiment #3: Controls

Sierra Tucson Care Center Considered a Top Recovery Clinic Get a Free Assessment. Call Now!

AZ Alcohol Detox Facility Exclusive, Luxury Rehab Facility. 1 Clinical Staff Per 3 Patients.

Branded

Non-branded

Company Logic

We have the most doctors, therefore we have the best care

Experiment #3: Treatments

Customer Logic

I am afraid to send my husband away to someone who will not care for him like I will

Sierra Tucson Care Center Considered a Top Depression Clinic Traditional & Alternative Therapies

Arizona Drug Rehab Considered a Top Addiction Clinic Traditional & Alternative Therapies

Branded

Non-branded

Experiment #3: Results

Branded PPC ads Conversion Rate

Control 0.31%

Treatment 44.2%

Relative Difference 14,000%

14,000 % Increase in CTR for Branded Ads

What you need to understand: By focusing on value proposition, achieved a 14,000% increase on branded ad clickthrough rates, and a 3,300% increase in non-branded CTR.

Non-branded PPC ads Conversion Rate

Control 0.13%

Treatment 4.41%

Relative Difference 3,300%

3,300 % Increase in CTR for Non-branded Ads

Testing Phase: Behavioral Psychology (Phase 3)

Highest Performing Branded Ads (>1000 Impressions

Lowest Performing Branded Ads (>1000 Impressions

Ad CTR Ad CTR

Bayside Marin - Recovery 21.84% Bayside Marin Clinic 0.97%

Not Your Ordinary Health Program. Rehab Shouldn't Stop Your Career.

Health Recovery Center. Call Now. For Top Executives Seeking Comfort.

Bayside Marin Center 6.98% Bayside Marin Clinic 1.09%

We Provide Private, VIP Recovery. Rehab Shouldn't Stop Your Career.

Your Own Room, Beautiful Facility. Your Own Room, Beautiful Facility.

Bayside Marin Center 6.18% Bayside Marin Clinic 1.11%

Rehab Shouldn't Stop Your Career. Alternative Health Recovery Center.

For Top Executives Seeking Comfort. Very Private & Exclusive. Call Now.

Bayside Marin Center 4.97% Bayside Marin - Official 1.14%

Everything You Need to Recover. Exclusive Treatment Recovery Center

Private Room, Chef, Healthy Living. Private Chef, Pool, Gym Call Now.

Bayside Marin Center 4.32% Bayside Marin Treatment 1.23%

Alternative Health Recovery Center. Everything You Need to Recover.

Very Private & Exclusive. Call Now. Private Room, Chef, Healthy Living.

Effects of Psychological Mapping on Paid Advertising

The word “clinic” vs. “center” has strong connotation and creates a 3X difference in CTR. The difference is understanding the psychology of the words.

Center conveys… Expertise Research Formal

Educated personnel

Clinic conveys… Quick Cheap

Informal Less-educated personnel

The target audience is highly empathetic, social, caring, worried thus wanting a more formal, highly educated service with high

interaction.

Effects of Behavioral Psychology on Value Prop

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Azure Acres is the most affordable and nurturing treatment center in Northern California. Our knowledgeable and understanding staff members – 98% of whom are in recovery themselves – provide an unparalleled level of support to you in recovery. The expertise we have gained over 50 years serving individuals in need, allows us to provide highly effective drug and alcohol treatment services. Our intimate setting in the Sonoma hills provides a warm and welcoming atmosphere, where staff and alumni come together to guide you through every step of your recovery.

Customer Loved-One Profile

Comm. Style - Mirror

- Accepting

- Fairness

- Same compassion

- Be Gentle

- Tell Stories

- Team up with them

Personality - Selflessness

- Investing in Others

- Loves fairness

- Hates Criticism

- Agreeable

- Needs lots of lead up

to change

Words to Use: We, Us

You are doing the right thing

They are going to be so much better

We are going to help this person together

Successes Placed Pressure on Other Areas of the Funnel

Poor Reviews on Social Sites were undermining our value proposition

1-Star Rating on Yelp

Social Media Became Big Impact

We were forced to double our reputation management team and resources to implement effective campaigns: - Rating Monitoring - Proactive Updates - Suppression Management

3.5-Star Rating on Yelp

Marketing Optimization Causing Funnel Issues for Phone System & Admissions

Admits only related to inquiries created during time period

CTC PPC Results

6/17 - 6/23 6/24 - 6/30 7/1 - 7/7

Answered Calls 371 318 239

Abandoned in Queue 81 19 9

Auto-transfer 0 48 75

Total Calls 452 385 323

Inquiries 149 146 99

Admits 25 26 13

% Abandoned 17.9% 5.6% 3.6%

Adm/Inq 16.8% 17.8% 13.1%

Calls per Inq. 2.49 2.18 2.41

PPC Spend 14,994 16,387 16,481

Cost per Admit 600 630 1,268

Calls abandoned in

queue dramatically

lower

Auto attendant

shunts transfer

volume away from

service advisors

Too early to

tell as

additional

time

needed for

patients to

matriculate

In queue abandonment rates have improved dramatically. Effectiveness of

PPC changes potentially promising but still too early to tell. Will need

additional time for performance to stabilize before drawing additional

conclusions.

Examples from call script

• Many callers are already sold on the program, in which case moving them to the next stage of the funnel quickly may be appropriate or reflecting back their concerns and allowing them to state why they chose to contact Sierra (avoid losing trust but no need to sell at this point).

• TRUST is biggest issue at this stage. If client was referred, trust is more likely than if they found us online.

• Will treatment be effective? (Use value prop here: we have been in business over 30 years)

• Letting people know that we are here and still care regardless if they are ready or not is important and what sets CRC apart from other programs and organizations.

Transforming the way the phone is answered

Foundation Training was required to educate and enhance employee skills & performance

We have developed a training program to help everyone understand the models we incorporated and to ensure consistent performance improvements across the organization.

Foundation Training

Decision Making

Quantitative Methods

TQM

Presentation & Comm.

Marketing Methodologies

Minto Munger Problem Definition

Tufte Falacies of Argument Crisis Communication

Ttest & R2 Testing Models Economics (IRR & NPV) Chart Choice

KJ method Ishikawa/7-Step Language of Reporting MITs

Value Prop Definition Motivation Demand Modeling Behavior Psychology

5 phases of training covering Decision Making, Presentation & Communication, Quantitative Methods, TQM, and Marketing Frameworks

Focused on core skills not taught in formal education

Applicable to any situation, any job, and any company

Results: Value Prop Optimization

Value Proposition Testing Begins

Value Proposition testing results show 3x-4x increase in demand for services.

• You can use testing to reliably based your decisions on evidence in the marketplace

• Don’t stop at the basic learning of a test, look deeper into what it’s really telling you about customers

• Don’t focus on technology, focus on the customer

What you can learn from this transformational story

Thank You

Jon Ciampi

VP, Marketing, Business Development

& Corporate Development

CRC Health

Daniel Burstein

Director of Editorial Content

MECLABS

@DanielBurstein